Which of the following statements is FALSE?
A)A capital budget lists the projects and investments that a company plans to undertake during the coming year.
B)Income Tax = EBIT × (1 - τc).
C)When sales of a new product displace sales of an existing product,the situation is often referred to as cannibalization.
D)Overhead expenses are often allocated to the different business activities for accounting purposes.

Question

Quizplus · Accepted Answer

The formula for Income Tax should be Income Tax = EBIT × τc, where τc is the corporate tax rate.

Which of the Following Statements Is FALSE